The Tron network founder and prominent figure in the crypto world, Justin Sun, is allegedly in discussions regarding the sale of a stake in the cryptocurrency exchange Huobi Global. A recent report by Bloomberg, citing an anonymous source close to the matter, shed light on this development.
Justin Sun Allegedly Gauging Investor Interest in Huobi
Bloomberg’s report suggests that Sun has contacted potential investors to measure their interest in acquiring a stake in Huobi. However, the size of the stake and the valuation at which it would be sold remain undisclosed.
An insider from Bloomberg indicated that the deal is still in its early stages and is still being determined whether any potential investors will move forward with the acquisition.
Huobi Global is among Asia’s largest digital asset exchanges headquartered in Singapore, supporting over 400 cryptocurrencies. Despite its prominence, the company suffered considerable losses in recent years due to the 2021 cryptocurrency ban in China.
Justin Sun Dismisses Bloomberg’s Report as April Fool’s Prank
In response to the Bloomberg article, Justin Sun took to Twitter to refute the news, claiming it was merely an “April Fool’s Day prank.”
As much as I love a good April Fool’s Day prank, I must deny the report that @HuobiGlobal is seeking a stake buyer. Rest assured, Huobi is committed to providing our users with a safe, reliable, and innovative platform for trading and investing in cryptocurrency. ❤️
— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 1, 2023
Justin Sun’s connection to Huobi is perceived as complicated by many. Although he consistently denies owning any stake in Huobi Global, referring to himself only as an “adviser” to the exchange, it is widely known that Huobi’s co-founder Leon Li sold his controlling stake (60%) to About Capital, a Hong Kong-based investment firm. The core investor in About Capital is none other than the Tron founder.
Furthermore, Sun has reportedly invested approximately $200 million of his funds to keep the company solvent since the beginning of the year. Additionally, he is known to work at Huobi’s Singapore headquarters and represent the company in media interviews.
SEC Files Lawsuit Against Sun
In other developments, Justin Sun is currently facing charges brought against him by the United States Securities and Exchange Commission (SEC).
In March, the SEC filed a lawsuit against the Tron founder for selling TRON (TRX) and BitTorrent (BTT), which the commission considers unregistered securities. The lawsuit also includes allegations of fraud based on purported fake trading activity for both cryptocurrencies.
Sun has denied both charges, asserting that the SEC’s regulatory framework is still in its infancy and requires further development.
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